China Becomes Asia’s Biggest Securitization Market

China’s issuance of asset-backed securities rose by a quarter in the first eight months of 2015

By

Fiona Law

Updated Sept. 24, 2015 10:18 pm ET

China’s fledgling securitization market is taking off, as Beijing looks for new ways to ease lending to firms amid the country’s slowest economic growth in more than two decades.

In the past few months, Chinese officials have laid out new rules to expand and quicken the process for car makers and other lenders to issue debt securities made up of groups of loans bundled together, a practice known as securitization.